Quanta Services Inc (PWR)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,127,980 | 872,058 | 663,521 | 611,371 | 554,874 |
| Total assets | US$ in thousands | 16,237,200 | 13,464,300 | 12,855,200 | 8,398,270 | 8,331,680 |
| Operating ROA | 6.95% | 6.48% | 5.16% | 7.28% | 6.66% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,127,980K ÷ $16,237,200K
= 6.95%
Quanta Services, Inc.'s operating return on assets (operating ROA) has shown fluctuation over the past five years. In 2023, the operating ROA was 6.73%, slightly higher than the previous year's 6.23%. This suggests that the company was able to generate more operating income relative to its total assets in 2023.
Looking back, the operating ROA was lower in 2021 at 4.92% compared to 2020 and 2019 when it was 7.25% and 6.99%, respectively. The drop in 2021 indicates that the company's operating efficiency and asset utilization were not as strong as in the prior years.
Overall, Quanta Services, Inc. has demonstrated varying levels of operating ROA performance, indicating fluctuations in its operational effectiveness in generating profits from its assets. It would be beneficial for stakeholders to closely monitor this metric to gauge the company's operational efficiency and asset management strategies in the future.
Peer comparison
Dec 31, 2023